17 Jul Recovery phase two: A plan for jobs
Following the flexible furlough scheme, chancellor Rishi Sunak, announced phase two of recovery and the plan for jobs. This is a set of measures to help reduce unemployment within the UK. Since Covid-19 has been one of the greatest threats causing thousands of deaths, the government has had to take unprecedented action to help slow the spread of the virus. Releasing an abundance of funds to support the UK economy and ensuring all citizens enough opportunities.
The Chancellor of the Exchequer, Rishi Sunak said:
“Our plan has a clear goal: to protect, support and create jobs. It will give businesses the confidence to retain and hire. To create jobs in every part of our country. To give young people a better start. To give people everywhere the opportunity of a fresh start.”
Following this statement, we’ll be summarising the main measures available to businesses:
Job Retention Bonus
This bonus is a one off bonus of £1,000 which UK employers will receive for each furloughed employee who is brought back to work and is still employed until 31 January 2021. Employees must earn above the Lower Earnings Limit (£520 per month) on average between the end of the Coronavirus Job Retention Scheme and the end of January 2021. The payments will be made from February 2021.
Support for young workers – apprenticeships and training
A new £2 billion Kickstart Scheme will be launched creating new good quality jobs for those aged 16-24, claiming Universal Credit and at risk of long-term unemployment. The funding available for each 6 month placement will cover 100% of the National Minimum Wage for 25 hours a week. There isn’t a cap on the number of jobs employers can make available and employers are able to top up this wage.
Additional support and schemes:
The investment into employment support schemes, training and apprenticeships is unprecedented. A total of £1.6 billion is being focused on helping people get into employment during these tough times. Please see below the additional support the government is offering as part of the ‘A plan for jobs scheme’:
Employers will be paid to hire new apprentices giving £2,000 for each new apprentice they hire under the age of 25, and £1,500 for each new apprentice hired over the age of 25. This will be an additional bonus to the already existing £1,000 provided for new 16-18-year-old apprentices and those aged under 25 with an Education, Health and Care Plan.
This second recovery phase encourages high quality traineeships investing £111 million to fund placements for young people aged 16-24 years old. This is a first for the government and should triple the involvement in traineeships ensuring youngsters have access to good quality training.
An investment of £17 million is being made to triple the number of sector-based work academy placements in 2020-2021. The government will also fund work coaches in Job Centre Plus to ensure there is enough support.
Finally, there is new funding of £269,000 to ensure young people get the correct advice surrounding work and training through the National Careers Service.
For more information surrounding the phase two: A plan for jobs, head over to the government website here. Please note all facts and figures were taken directly from the government’s website and we’d advise you read through all of the terms and conditions before launching into any of the schemes.